# Morning Minute: Crypto Rebounds After Trump’s TACOs on Tariffs
🔥 Key Takeaways
- Cryptocurrency markets rebounded following Trump’s softened stance on EU tariffs.
- Market sentiment improved as geopolitical tensions eased, boosting risk assets.
- Bitcoin (BTC) and Ethereum (ETH) saw notable gains, with altcoins following suit.
- Traders remain cautious, watching for further political developments.
## Market Reaction to Trump’s Tariff Reversal
In a surprising yet predictable move, former President Donald Trump walked back his latest threats of imposing tariffs on the European Union. The crypto market, which had been under pressure due to geopolitical uncertainty, quickly rebounded as risk appetite returned.
Bitcoin (BTC) surged past $68,000, while Ethereum (ETH) reclaimed $3,500, signaling renewed bullish momentum. Altcoins also benefited, with Solana (SOL), XRP, and meme coins like Dogecoin (DOGE) posting gains.
## Why Crypto Reacts to Macroeconomic Shifts
Cryptocurrencies have increasingly become a barometer for global risk sentiment. When geopolitical tensions rise, investors often flee to stablecoins or cash. Conversely, when tensions ease, capital flows back into speculative assets like crypto.
Trump’s tariff threats had initially spooked markets, but his reversal provided immediate relief. Analysts suggest that traders should remain vigilant, as political rhetoric can shift rapidly, leading to renewed volatility.
## What’s Next for Crypto?
While the short-term bounce is encouraging, long-term trends will depend on broader macroeconomic factors, including:
– Fed policy (interest rate cuts or hikes)
– U.S. election dynamics (further trade policy shifts)
– Institutional adoption (ETF inflows, regulatory clarity)
For now, the market breathes a sigh of relief—but as always in crypto, conditions can change in an instant.
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